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Late-Thursday night in the US, El Pais came out with the news that the Spanish Prime Minister (PM) Pedro Sánchez announced a state of emergency in Madrid.

The decision is against the regional high court that crossed the central government’s verdict on mobility restrictions. It was said in the piece that the local authorities in Madrid favored such a move from the justice department.

FX implications

With the quickly rising coronavirus (COVID-19) cases in Spain, 10,491 making it the second-largest count in Europe, such news of the national emergency weigh on the market’s risk tone. Though, global traders are busy cheering hopes of further stimulus as Wall Street just closed in positive.

It’s worth mentioning that EUR/USD stops its run-up from 1.1734 to 1.1761 after the news.

Read: Forex Today: Risk-on weighs down the greenback vs its rivals